Himachal’s Land Reform Bill: Easier Rules, More Opportunities for Farmers and Villagers

The Himachal Pradesh government has introduced the Land Tenure and Land Reforms (Amendment) Bill, 2025, bringing important changes to Section 118 of the 1972 Act. Revenue Minister Jagat Singh Negi tabled the bill in the Assembly during the winter session, saying the reforms are meant to simplify land-related processes while protecting the interests of local farmers.

Key Highlights of the Bill

• Simpler leasing rules in villages: Renting a building or part of it in rural areas for commercial use (up to 10 years) will no longer need Section 118 permission. This is expected to boost small businesses, startups, village shops, and rural tourism.
• Government acquisitions clarified: Land acquired by the state, Centre, or government bodies under the Land Acquisition Act, 2013 will now be clearly exempt from Section 118 restrictions.
• Farmer cooperative societies empowered: Cooperatives made up entirely of farmers can now purchase land, provided they maintain farmer-only membership. If even one non-farmer joins, the land will automatically revert to the government. With nearly two million people involved in cooperatives, this move strengthens agriculture-driven economies.
• Property exemptions extended: Buyers of properties under HIMUDA and TCP schemes will continue to enjoy Section 118 exemptions, not just the first buyer but all subsequent ones too.
• Residential relief for non-agriculturists: Individuals purchasing flats or houses up to 500 sq. metres in RERA-registered projects for genuine residential use won’t need Section 118 permission. Future buyers of the same property will also remain exempt.
• Flexible land-use deadlines: While land bought under Section 118 must be used within three years, the government can now grant extensions—up to five years in total—with penalties if deadlines are missed.

What Leaders Say

Chief Minister Sukhwinder Singh Sukhu emphasized that the bill doesn’t drastically alter Section 118 but instead addresses practical challenges faced by genuine buyers. He noted that the new rules allow the government to grant reasonable extensions rather than a blanket five-year period, keeping land-use regulations strict yet workable.